If British consumers were shocked by the extent of tax dodging by Google, Starbucks and Amazon, what must Zambians make of this weekends revelations about Zambian sugar; which made record profits in 2012 and is expected to exceed 400,000 tons of sugar production for its European and African markets. However, between 2007 and 2012 Zambia Sugar paid less that 0.5% of its pre-tax profits in corporation tax. But the company is unapologetic. It claims as a direct result of our investment in Zambia since 2008, the availability of substantial capital allowances has led to virtually no corporate tax being payable. Its activities include a range of financial engineering, such as inventing fictitious companies in Ireland, which it pays for consultancy services! The figures were uncovered by the NGO Action Aid, which has long campaigned against tax dodging by huge multinationals, which means that countries like Zambia, which depend for around 20% of their income from corporation tax and money leaving the country. Zambias president Guy Scott says his people are too nice, and that its time for them to get nasty with these companies. But the problem is that if Zambia does begin a crackdown on this corporation and other offenders - particularly mining companies - they may move to another African country with a friendlier tax environment. But its not just African countries that are being called upon to act. So are western countries, led by Britain, which will soon be chairman of the G8 club of rich nations. Its Deputy Prime Minister Nick Clegg will visit Ethiopia and Mozambique to investigate this issue. https://youtube/watch?v=pvjxUfZ_-IE
Posted on: Wed, 21 Jan 2015 20:57:04 +0000
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